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Julie Lambert Has a Large Consulting Practice

Question 123

Multiple Choice

Julie Lambert has a large consulting practice.New clients are required to pay one-half of the consulting fees up front.The balance is paid at the conclusion of the consultation.Lambert's recording of the cash received at the end of the engagement includes a(n)


A) Increase to Cash and an increase to Unearned Service Revenue.
B) Increase to Cash a decrease to Unearned Service Revenue and an increase to Service Revenue.
C) Increase to Prepaid Service Revenue and an increase Service Revenue.
D) No action is required when the engagement is concluded.

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